Commodities
Production Hedges Bet on Silver Price for First Majestic
First Majestic Silver Corp (TSX:AG) has raised its 2026 guidance to 14.6-15.5 million ounces of silver and 128,000-135,000 ounces of gold after a strong second quarter.
The company's operational trajectory deserves as much attention as the silver price because production and cost discipline determine how much of the ceiling the company actually reaches.
A rising silver price with flat or falling production captures only part of the opportunity, whereas rising production amplifies the benefit of a strong market.
The $318-344 million capital budget includes about $75 million earmarked for restarting the Jerritt Canyon gold mine in Nevada, which signals a growth push but introduces execution risk.